Account types Frequently Asked Questions

Since 2009, Canadians 18 or older can contribute to a TFSA. You can deposit up to CDN $10,000, starting in 2015 per year per person, regardless of your incomelevel, all the while having the right to contribute unused amounts from previous years, since 2009. Note that from 2009 to 2012, the maximum annual contribution was CDN $5,000. The contribution room was increased to CDN $5,500 per year in 2013.

Contributions are not tax deductible, but returns earned on your investments (including capital gains) are not taxable, even upon withdrawal.

Unused contribution room can be deferred to subsequent years.

You can withdraw funds from your TFSA at any time, for any reason.

Withdrawn amounts can be added to the next year’s contribution room. For instance, if you withdraw $3,000 from your TFSA in 2013, you will be authorized to contribute $3,000 more in 2014, in addition to the maximum annual contribution room of $5,500.

Neither the income generated in a TFSA, nor the withdrawals have an effect on your contribution room or your income-based federal credits.

The minimum payment calculations can be based on your age or spouse’s age. If your spouse is younger, you can choose their age to grow your RRIF assets over a longer period as the minimum mandatory withdrawals will be smaller if the age of the younger spouse is used.

Note that according the Canada Revenue Agency regulations; this choice is irrevocable, even in the event of death or divorce. Furthermore, this option is only available at the time of opening your RRIF account.

The minimum amount that must be withdrawn from an RRIF or LIF is calculated by National Bank Direct Brokerage in accordance with the fair market value of the plan, as at December 31, and your age (or your spouse’s age depending on the option you selected when you opened the account).

Maximum:

None for RRIFs

The maximum amount that can be withdrawn from the LIF is calculated in accordance with the same criteria as the minimum amount.

The minimum and maximum amounts (if applicable), as well as the disbursement frequency are indicated on your portfolio statement or under the Registered Accounts section (under the Accounts menu) of your online brokerage account.

Note: You must ensure to have sufficient liquidity in your RRIF or LIF to allow us to proceed with the disbursements. If there is insufficient cash in your account, interest charges could apply to your debit balance, in addition to transaction fees (corresponding to the Transactions carried out through a representative fee schedule), if we are forced to sell a security to cover the debit balance.

The Primary Caregiver of a child is the person or organization primarily responsible for the care and education of the child. The caregiver must be an individual or a public entity.

An individual primary caregiver is the person eligible to receive the Canada Child Tax Benefit (CCTB) for the child as defined under the Income Tax Act. This can be the mother, father, grandparent or legal guardian.

A public primary caregiver is an organization, establishment or agency that maintains the child and is eligible to receive payments under the Children's Special Allowances Act.

No, even if you do not contribute to the RESP, the Canadian government will contribute the CLB amount of $500 for the first year, and $100 for subsequent years during which you qualify (until the child is 15 years of age).

No, the CLB is not included in the lifetime maximum of $7,200. In fact, the child is entitled to $7,200, plus $500 of CLB and $100 per year before he or she is 15 years of age, if admissible. As such, the child can benefit from an additional $2,000 for the duration of the plan.

National Bank Direct Brokerage ( “ NBDB “ ) is a division of and a trademark used by National Bank Financial Inc. ( “ NBF “ ) for its order-execution services. National Bank Direct Brokerage offers no advice and makes no investment recommendations. The client is solely responsible for the financial consequences of his or her investment decisions. Member of the Canadian Investor Protection Fund.